The UN warns of increasing cybercrime and illegal gambling in Southeast Asia

The United Nations Office on Drugs and Crime (UNODC) has issued a stark warning about the rapid increase in cybercrime and illegal online gambling in Southeast Asia.

According to the UNODC, the scams targeting victims in East and Southeast Asia led to financial losses estimated at between US$18 billion and US$37 billion in 2023, with much of the activity linked to organized crime groups in the region.

The report highlights the increasing use of online platforms by criminal networks for illegal operations, especially in countries in the Mekong region, which has become “an important testing ground” for these enterprises.

UNODC’s findings are based on criminal charges, intelligence analyses, court documents and consultations with regional and international law enforcement agencies.

The agency also mapped and analyzed data from thousands of Telegram underground marketplaces and channels linked to Asian organized crime networks.

Centers of illegal activities

The report highlights that rapid advances in physical, technological and digital infrastructure have allowed organized crime to thrive.

Organized crime groups are increasingly using casinos, hotels, special economic zones (SEZs) and other real estate developments as hubs for the growing illegal economy, the agency said.

These locations often serve as bases for transnational criminal groups involved in illegal activities such as drug production, human trafficking for forced labor and prostitution, and money laundering.

“Unregulated casinos, junkets and illegal online gambling platforms provide critical infrastructure for transnational organized crime groups operating in and beyond the region,” the report said.

Enforcement challenges

According to the UNODC, authorities in East and Southeast Asia face significant challenges in enforcing laws to combat illegal online gambling.

The report notes that the spread of this industry has been difficult to control, leading to a multi-billion dollar shadow economy operating in ‘grey’, ‘black’ or ‘pre-regulated’ markets.

Criminal networks have developed sophisticated methods to process and launder large volumes of illegal transactions, driving demand for ‘money laundering-as-a-service’ providers.

The report outlines how illegal online gambling platforms and unauthorized virtual asset service providers have been exploited by major organized crime groups to launder billions in criminal proceeds.

“Organized crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing the ability of governments to contain it,” said Masood Karimipour (pictured), UNODC Regional Representative for Southeast Asia and the Pacific.

AI-driven crimes are on the rise

The report also points to a sharp increase in AI-driven crimes, especially when it comes to deepfakes.

In the first half of 2024, mentions of deepfake-related content linked to criminal groups in Southeast Asia increased by more than 600%.

“The integration of generative artificial intelligence by transnational criminal groups involved in cyber fraud is a complex and alarming trend,” said UNODC regional analyst John Wojcik.

He noted that AI has increased the reach and efficiency of cyber fraud, lowering the barriers for less tech-savvy criminal networks to commit high-level cybercrime.

The UNODC urged governments to act quickly to combat the growing threat of cyber fraud and illegal online gambling in the region.

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